Artificial intelligence has brought Nvidia’s market value to its peak. But what about cryptocurrencies? They don't know her.

英伟达显卡  图片：Shutterstock

Shares of Wall Street's artificial intelligence darling Nvidia climbed to record highs this week, with its $1.18 trillion market capitalization eclipsing the entire cryptocurrency market.

Shares of Nvidia hit $502 on Thursday after the chipmaker reported fiscal second-quarter net profit of $6.2 billion on total revenue of $13.5 billion, which doubled from a year earlier and beat analysts' expectations.

The company currently ranks sixth among public companies, higher than Elon Musk's Tesla or Mark Zuckerberg's Facebook. Meanwhile, the market value of the more than 10,000 cryptocurrencies tracked by CoinGecko reaches $1.09 trillion.

Mark Connors, head of research at 3iQ, told reporters: "Nvidia's stock price illustrates that they are a leader in the production of artificial intelligence hardware. As it relates to cryptocurrencies, it shows that we are still in the early stages."

After a rocky slew of last year that saw cryptocurrency prices fall and several companies fail in the crypto winter, cryptocurrencies continue to find their footing, with OpenAI’s release of ChatGBT turning artificial intelligence technology into a hot commodity.

"A new era of computing has begun, and companies around the world are moving from general-purpose computing to accelerated computing and generative artificial intelligence," Nvidia founder and CEO Jensen Huang said in a statement on Wednesday.

ChatGPT’s easy-to-use interface makes AI technology as easy to use as typing in a chat box. Connors noted that it contrasts with search engines like Google and the steep learning curve in the cryptocurrency space.

“Will Ethereum become a verb like Google?” Connors said. “Not in the next year or two.”

Nvidia's strong quarter was fueled by 141% sequential growth in its data center business, where the chipmaker makes GPUs for high-performance computing and cloud applications and generated record $10.3 billion in revenue from that unit alone.

Ram Ahluwalia, CEO of Lumida Wealth Management, told reporters that the chipmaker's surge in shares is a direct result of rising revenue expectations and that cryptocurrencies will need to adopt use cases such as tokenization to achieve similar results.

He said: "There is a reasonable basis for Nvidia's price increase, which is related to revenue, and tokenization allows digital assets to generate income or attract more investors to participate. The more cryptocurrencies can accept tokenization and bring real-world The more assets are brought onto the chain, the better the price trajectory of digital assets will be.”

Ahluwalia added that cryptocurrencies and Nvidia are not necessarily in competition with each other and that investment opportunities in artificial intelligence do not take away the value of cryptocurrencies. But in order for the industry to catch up, securities laws need to adapt.

“The most exciting opportunities in tokenization will result in violations of securities laws,” he said. “Really unlocking token economics, bringing you value and price appreciation, is updating securities laws and having direct conversations with Congress and the SEC.”

Nvidia's shift comes in the wake of Friday's flash crash, which wiped $84 billion from the cryptocurrency's market value. Bitcoin fell 6% in two hours to around $26,250, while altcoins such as Ripple (XRP) fell 17% to $0.47 in the period, according to CoinGecko data.

The decline was triggered by reports that Elon Musk's SpaceX sold an unspecified amount of Bitcoin and that Evergrande Group, one of China's largest real estate developers, filed for bankruptcy under Chapter 15 of the U.S. Bankruptcy Code. macro panic.

Nonetheless, cryptocurrency market capitalization has recovered since it fell to $826 million shortly after cryptocurrency exchange FTX collapsed last December. Bitcoin has gained more than 50% so far this year from around $16,600 in January.

Bitcoin's gains appear tepid compared to Nvidia, the best-performing company in the S&P 500 so far this year. When the chipmaker's shares hit an all-time high on Thursday, they were up more than 250% from $143 in early January. #人工智能 #英伟达